PTC (PTC) Stock Forecast & Price Target

PTC's total revenue reached $894 million, marking a significant increase of 39% year-over-year on a constant currency basis, indicating robust growth potential in its core markets. The company's ability to achieve a 10% organic growth in European-based annual recurring revenue (ARR) and 7% growth in the Americas, despite a challenging macro environment, underscores its strong market position and customer retention. Looking ahead, PTC is projected to realize approximately 13.2% revenue growth for FY25, supported by the anticipated growth in its product lifecycle management (PLM) segment and continued expansion of its computer-aided design (CAD) offerings.

The analysis indicates a negative outlook on PTC's stock, primarily due to a reduction in total revenue estimates for FY26e to $2,798 million, which is a decline of approximately 0.5% compared to earlier projections. Additionally, the company is facing challenges with stagnant year-over-year growth in net new Annual Recurring Revenue (ARR), which failed to meet market expectations during FY26. These factors, coupled with ongoing macroeconomic weaknesses and potential business disruptions related to divestments, have led to further downward adjustments in ARR estimates and a cautious outlook for future recurring revenue growth.